'Not...Roses And Champagne For Apple In Beijing,' But Dan Ives Urges Investors To 'Navigate The Noise' Amid Cupertino's China Revenue Decline

Wedbush analyst Dan Ives offered a positive perspective on Apple Inc.‘s (NASDAQ:AAPL) position in China, despite a recent revenue decline in the region.

What Happened: Apple’s first-quarter earnings report showed a year-over-year increase, surpassing market expectations. However, the stock experienced a dip in after-hours trading due to a revenue drop in China.

Ives, however, in an interview with CNBC, expressed optimism about Apple’s position in China. "I'm not saying it's roses and champagne for Apple in Beijing, but we are seeing actually pretty strong from an install base perspective," Ives said.

"200 million iPhones. And they've gained market share in the last 18 months. Our call here is you've got to — the reason we put so much work into it, navigate the noise and the reason the stock is up from where it was after that quarter is because the street is recognizing the AI revolution is now coming to Cupertino."

Wedbush analyst Daniel Ives had previously called it a ‘Golden Opportunity’ to own Apple’s stock, predicting a $4 trillion market cap in 2024.

Interestingly, Apple’s market capitalization currently stands higher than the combined GDP of 140 countries, a fact that underlines the tech giant’s financial prowess.

Despite these challenges, Apple’s stock rose by 50% in 2023, underpinned by investor faith in the company’s ability to sustain high profits.

Image Via Shutterstock

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Wedbush analyst Dan Ives offered a positive perspective on Apple Inc.‘s (NASDAQ:AAPL) position in China, despite a recent revenue decline in the region.

Why It Matters: While Apple’s revenue grew in all regions compared to the previous year, China saw a 12.9% decline. This is a significant market for Apple in terms of both demand and supply, but it has been affected by competition from Huawei, strained U.S.-China relations, and unfavorable economic conditions. Despite the revenue decline in China, Apple’s overall performance has been strong. The company’s first-quarter earnings exceeded market expectations, with a year-over-year increase.

Wedbush analyst Daniel Ives had previously called it a ‘Golden Opportunity’ to own Apple’s stock, predicting a $4 trillion market cap in 2024.

However, there are potential hurdles for Apple in 2024. These include China’s crackdown on foreign-produced devices and increased competition from Huawei Technologies Co. Eric Clark of Accuvest Global Advisors pointed out that the most significant risk for such mega-caps like Apple is the potential rotation of money to other names. He explained that such companies might face higher valuations, slower growth, and tougher year-over-year comparisons, encouraging investors to seek other areas with potentially higher returns.

Interestingly, Apple’s market capitalization currently stands higher than the combined GDP of 140 countries, a fact that underlines the tech giant’s financial prowess.

Despite these challenges, Apple’s stock rose by 50% in 2023, underpinned by investor faith in the company’s ability to sustain high profits.

Image Via Shutterstock

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'Not...Roses And Champagne For Apple In Beijing,' But Dan Ives Urges Investors To 'Navigate The Noise' Amid Cupertino's China Revenue Decline

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